Hotel Booking Sites Must Be Honest And Truthful

Hotel booking sites must review the way they rank and display rooms, the UK's competition watchdog has said.

Some sites may be making misleading claims about discounts, the Competition and Markets Authority said.

It is also examining whether sites are giving a false impression of room availability and rushing customers into booking decisions.

The CMA did not name which companies it has been investigating, but leading sites include Expedia and Booking.com.

The extent to which a hotel's ranking may be influenced by the size of the commission it pays was another issue highlighted by the CMA.

The CMA, which launched its investigation into online booking sites in October, says it has sent warning letters to a range of sites, demanding they review their practices to make sure they are fair and comply with consumer protection law.

How search result rankings are influenced by factors irrelevant to consumers, such as how much commission a hotel pays the site.

Whether a false impression is created by claims about how many people are looking at the same room, how many rooms are left, and how long a price is available.

Clarity over discounts, including whether a weekday rate is being compared to a previous weekend rate

Whether holidaymakers are hit with unexpected extra charges such as taxes and booking fees later in the booking process

About 70% of people who shop around for accommodation use hotel booking sites, according to the CMA.

Booking sites can make it so much easier to choose your holiday, but only if people are able to trust them, said Andrea Coscelli, chief executive of the CMA.

We are now demanding that sites think again about how they are presenting information to their customers and make sure they are complying with the law. Our next step is to take any necessary action, including through the courts if needed to ensure people get a fair deal.

Expedia, one of the leading sites, said: Expedia Group continuously aims to deliver attractive travel options at affordable prices in transparent, clear and easy to understand ways, so that our customers can make informed travel choices.

Expedia will continue to engage with the CMA on these consumer matters, as it continues its inquiries in the travel sector.

Kate Nicholls, chief executive of UK Hospitality which represents hoteliers, welcomed the CMA's announcement saying it would bring reassurance for customers.

She added that the inquiry should lead to a wider review of the charges that these booking sites levied on hotels, which led to higher prices for holidaymakers.

This is another example of digital businesses stealing an unfair lead on honest, regulated operators whose first concern is to deliver good service to their customers, she said.

Lavinia Dagostine has run a nine-room guest house in Dorset for 11 years and said that these sites could make life difficult for traditional providers.

She relies on her own website and return guests before sending vacancies to a booking site.

It means that smaller B&Bs get left out because they can't afford to pay commission on top of all their other expenses, she said.

I agree it is easier for the booker but the commissions they charge the hotel or B&B sometimes take away any small profit that can be made, making us have to increase our prices.

The watchdog has ordered the sites, which it has not officially named, to review their practices, and to respond within the next few months.

At the end of the review, the sites can either give a legally-binding commitment to change the way they operate, or argue their case that their practices do not break the law.

If the CMA disagrees with their arguments, it can take the companies to court, where unlimited fines can be levied.

It has also raised various price guarantee claims with the Advertising Standards Authority.

Separately, the new EU Package Travel and Linked Travel Arrangements Regulations come into force on Sunday.

The changes mean that package holidays consisting of a flight, hotel, car-hire or other tourist services - either bought online for an all-in price or through linked web pages - will get the same protection as packages bought in travel agencies.

These protections include being flown home or a refund if a travel company or airline goes bust.


Tourism Observer

KENYA: Kenya Tourism Federation Opposes Cutting Down Tourism Trade Fairs Attendance

Kenya Tourism Federation like many other Tourism, Travel and Hospitality stake holders are sharply opposed to Kenya Tourism Ministry cutting down of budget for Tourism exhibition attendance.

Are we not supposed under an agreement to have joint stands at tourism trade fairs, which includes Kenya?

Why are they suddenly breaking ranks with us?

Whatever they are trying to say, why not tell the truth that they failed to allocate enough money for tourism marketing this year?

Well let me tell them, if they are AWOL those of us who are at those trade shows will simply sell our own countries and Kenya’s loss will be our gain.

Entebbe and Kigali are now well connected to Europe, the Gulf and across Africa and it is no longer essential to fly through Nairobi to get here said a leading Ugandan tourism agent.

Another from Rwanda said This is an uninformed decision taken for lack of money surely and now trying to explain it away.

I speak of experience because we were told last year that permit fees for gorilla tracking had to be doubled for conservation reasons and we now know that this was equally poorly informed.

At least we still go to tourism trade shows and with the Kenyan competition absent we stand a better chance to sell those expensive permits.

Mohammed Hersi Chairman of the Kenya Tourism Federation made the following statement:

I am one of the few people who are opposed to the move by KTB to pull out of fairs. Even retaining ITB Berlin was after we raised hue and cry.

I do NOT recall any research or study that was done or shared with us for a buy in that indeed participating in these fairs is waste of time and money.

WTM London is mainly for UK agents and some European. It is even more crucial now that BREXIT is happening and UK is taking back Its rightful No 1 position as a tourist source for Kenya . ITB is for entire EU and other buyers

Indaba is mainly for Safari Buyers especially North America. Australia etc. ATM Dubai is for the GCC and Asia.

They talk of ROI. Firstly we have never been told how much we spend on these fairs besides we all fly ourselves and also pay for our accommodation we then share the cost of the stand.

The justification put forward is that we are now adopting a direct consumer approach does not hold any water since it is a known fact that as a safari destination you’ll always need a DMC who in turn works with wholesalers globally.

The logistics of attracting a do it yourself client for a safari itinerary is next to impossible more so when we are trying to attract families.

You tell me which family from Sydney or Seattle or Tokyo would attempt to do that?

Even with a DMC they are never sure about Africa. Kenya as a destination is not some Disney that we can wake up and claim to market direct to the consumer.

You bypass the wholesalers and you avoid the fairs then they’ll happily read your obituary to any potential visitor while our competitors will happily pick the pieces.

They have already done it at ATM Dubai and Indaba Durban and soon at WTM London.

We have no issue with digital campaign but that should complement other channels like fairs.

Even at our worst image crisis as nation like the PEV of 2007/8 while the peace accord was signed on 28th Feb 2008 the following week we were at ITB telling the world we are open for business.

Imagine for once if we missed out?

To KTB if fairs are a failure how comes the rest of the world are all attending?

What is that very special insight that KTB has that has been missed out by the rest of the world who are still wasting their time and money at these fairs so to speak?

If KTB is going digital how come the Tech zones at these fairs are getting bigger and better every year yet all they do is to trade online.

Why would Booking.com, Expedias and The likes "waste" their money at fairs yet they can comfortably do it in a digital way besides that is precisely what they are Online Travel Agents OTA’s.

Where would you meet 30 buyers from 4 continents and 20+ source countries in 3 days?

If you were to physically visit all these source countries to meet all these players you will blow your budget for the next three years.

Coca Cola President was asked by a young pilot why they spend so much money on advertising yet Coca Cola is already popular.

The President calmly responded to the young pilot “Why are we running the engine and yet we are already airborne.”

I am afraid pulling out of these fairs will negatively affect our destination while the competition is rubbing their hands with glee.

Well time will tell and as industry players we are exploring how to take ourselves to WTM London.

If that is to happen then KTB’s very existence will be under focus since marketing and promoting the destination is their first mandate which by default they would have abdicated.

I rest my case
Mohammed Hersi
Chairman
Kenya Tourism Federation

SINGAPORE: Singapore Tourism Board Introduces App To Improve Tourism Business

Small businesses hoping to get a share of the tourist dollar now have an easier way to grow their reach through a new online platform that allows them to share their content with a broader audience, or use resources from it to improve their own services.

The Tourism Information and Service Hub, launched yesterday by the Singapore Tourism Board (STB), will provide a one-stop tourism resource for businesses.

Attractions can, for example, upload their operating hours and events to gain exposure, while travel businesses here and abroad may download such information and have updates automatically reflected on their linked websites and apps.

STB chief executive Lionel Yeo, who launched the hub at STB's annual tourism industry conference, said the platform addresses an industry need to have more up-to-date information about tourism offerings and to have a one-stop source to find out what is happening in Singapore.

The platform also provides access to content or software that can be used on a website or app of a business. It is free for businesses to use.

Mr Alvin Yapp, owner of The Intan, a private Peranakan museum, is one of more than 600 companies that have registered.

We don't have a huge marketing budget to reach out to tour agents or potential customers, Visitors may have difficulty finding these niche experiences, and the hub now allows smaller players like myself to connect, said Mr Yapp.

Mr Yeo said data analytics will also play a bigger role in tourism.

The Singapore Tourism Analytics Network, launched last year for internal use by the STB, will now be made available to external stakeholders in phases, said Mr Yeo.

The network uses aggregated visitor geo-location data, among other information, to gather insights on tourists here.

The STB has already entered into data partnerships with industry members, including Sentosa Development Corporation and Expedia.

Under a partnership cemented this week, Expedia will provide booking and search data to the STB to share with tourism stakeholders here, a first for the booking platform.

Other plans announced at the conference included a new night experience at the Singapore Zoo and Marvel-themed events.

A Marvel Studios, Ten Years Of Heroes exhibition will run for three months from June at the ArtScience Museum as part of STB's three-year partnership with The Walt Disney Company South-east Asia to bring themed events and activities here.

Minister for Trade and Industry S. Iswaran, speaking at the event yesterday, noted that increased air connectivity and a rapidly growing middle class in the region are among the factors projected to raise international visitor arrivals to the Asia-Pacific from 279 million in 2015 to 535 million in 2030.

The industry can better leverage technology to sharpen marketing and outreach efforts, complement and refresh tourism offerings and drive better productivity, he added.

Download from the Apple App Store or Google Play Store now


Tourism Observer

SINGAPORE: Travel Agencies Say Singaporeans Skipping US As A Holiday Destination

Some Singaporeans are bypassing the United States as a destination during the June holiday period.

For the first time in 38 years, Sino-America (SA) Tours has had no confirmed group booking for all three of its US tour packages.

Its spokesman said: "It was shocking that recently customers were no longer inquiring about our US tour packages, but interest has been gradually declining over the past two years."

She said there had been a 50 per cent drop in bookings in 2015, followed by an 80 per cent drop last year.

Most US tour packages for June are usually booked by February, and SA Tours has stopped advertising them. The spokesman said Europe has become a more affordable alternative.

SA Tours was among four of five travel agencies that said they had seen a fall in demand for US tour packages.

Dynasty Travel's public relations and communications director, Ms Alicia Seah, said there had been a 30 per cent decrease in bookings for US tour packages compared with the same period last year.

She cited the uncertainty caused by US President Donald Trump's travel ban on citizens of several Muslim-majority countries as one of the factors for the decline. Though the travel ban did not affect any Asia-Pacific country, it suggested hostility to the rest of the world, she added.

Two other agencies, ASA Holidays and CS Travel, cited similar factors for their 20 to 30 per drop in bookings to the US.

CS Travel's general manager, Ms Alice Lai, said: "The currency and change of government in the States have played a part in the fall, but we believe once stability is restored, Singaporeans will want to travel there again."

But Chan Brothers Travel's marketing communications executive, Ms Justine Koh, said the US remains as a top 10 destination for its customers, and its US bookings have not been affected.

"As long as the package price is attractive, Singaporeans will continue to make the US one of their go-to holiday destinations," she added.

Search volumes on travel search engine Kayak.sg from March to mid-April showed searches for flights to the US had dropped 23 per cent from last year. Flight bookings to the US in June also dropped by 10 per cent, while flight prices decreased by 8 per cent.

Mr Imbert Fung, director of Kayak South-east Asia and India,said: "A contributing factor may be the recent uncertainties surrounding the US, and additionally, a recent survey we conducted found that Singaporeans are most concerned with safety and security when they travel."

A spokesman for web travel site Expedia said that airfares from Singapore to North America and Europe have dipped by 5 per cent to 10 per cent since last year.

Citing examples such as the travel ban and ban on electronic gadgets on certain flights, Dr Michael Chiam, senior lecturer in tourism, Ngee Ann Polytechnic, said the Trump administration and its policies have been a factor in the falling demand for travel to the US.

Mr Gevin Png, course manager for hospitality and tourism management, Temasek Polytechnic, said: "Perception plays a big role in tourism and when something negative happens, the region will be affected.

"People will still travel to the US for business and studies, but those travelling for leisure may prefer going elsewhere."

US Embassy spokesman Camille Dawson said: "The US government is committed to facilitating legitimate travel for international visitors. The US Embassy in Singapore continues to welcome and encourage Singaporeans' travel and study in the US."

She added that the embassy had 750 attendees during its February EducationUSA fair, an increase from the 600 last year.

But Miss Nadira Rafeek, a 22-year-old Muslim who has worn the hijab since 2015, said: "After I started wearing the hijab, I became more cautious about going to Western countries because it makes me recognisable as a Muslim.

"I won't be travelling to the US any time soon."

Travel agencies say that Singaporeans are skipping the US as a holiday destination because of such factors as:

TRAVEL BAN: US President Donald Trump has tried twice to deny entry to the US to all refugees for 120 days and halted for 90 days the granting of visas to nationals from several Muslim-majority countries. Though federal judges have blocked his directives, immigration checks have been tightened.

LAPTOP AND TABLET BAN: Last month, the US and UK imposed restrictions on carry-on electronic devices on planes coming from certain airports in Muslim-majority countries in the Middle East and North Africa in response to unspecified security threats.

STRONG US DOLLAR
The greenback has appreciated more than 6 per cent against a basket of six major currencies in the last year, making the US a more costly destination for tourists.